When is a variance considered to be significant?

Question

Quizplus · Accepted Answer

A variance is considered significant when it is large compared to the actual cost. This means that the difference between the expected cost and the actual cost is significant enough to affect the overall budget and financial situation of the organization. Other factors such as infrequency, favorability, and control are also important, but the size of the variance is the most important factor in determining its significance.

When Is a Variance Considered to Be Significant